Today's financial markets are undergoing unprecedented structural changes as the result of three macro trends. A first macro trend is “sector convergence”, which is the merging of investment banking, commercial banking, and insurance markets and products. The second macro trend is the growth of credit risk transfer instruments, which has created a current market of $1.5 trillion for credit risk transfer products. The third macro trend is the increasing use of electronic distribution networks, financial information systems, intranet systems, and the Internet for instantaneous online distribution and trading of financial instruments.
The present invention provides a new system to harness and benefit from these three structural changes transforming the financial markets.